Core Viewpoint - A securities class action lawsuit has been filed against Kyndryl Holdings, Inc. and certain executives, alleging misleading statements regarding the company's financial condition and free cash flow metrics [1][5]. Group 1: Lawsuit Details - The class action was filed in the U.S. District Court for the Southern District of New York, asserting claims under the Securities Exchange Act of 1934 [1]. - The class period for the lawsuit is from August 1, 2024, to February 6, 2026, expanding from a related action that covered August 7, 2024, to February 9, 2026 [2]. - Investors wishing to serve as lead plaintiff must file a motion by April 13, 2026, as per the Private Securities Litigation Reform Act [3]. Group 2: Company Background - Kyndryl, which spun off from IBM in 2021, provides IT infrastructure services, including cloud hosting and AI solutions [4]. - The company emphasized free cash flow as a key performance metric, indicating its importance for financial health and growth potential [4]. Group 3: Allegations and Financial Disclosures - The lawsuit alleges that Kyndryl misled investors about its free cash flow metrics, which were presented as indicators of financial strength but were based on unsustainable cash management practices [5]. - Kyndryl's financial results for Q1 2026 showed revenue of $3.743 billion and free cash flow use of $222 million, both missing analysts' estimates, leading to a 21% decline in stock price [6]. - On February 9, 2026, Kyndryl disclosed internal control weaknesses in cash management practices and reduced its full-year free cash flow guidance from $550 million to between $325 million and $375 million, resulting in a 54% drop in stock price [7].